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macd divergence trading

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# **MACD Divergence Trading**

MACD Divergence helps traders spot **trend reversals and momentum shifts** by comparing price action with the MACD indicator.

## **1️⃣ Types of MACD Divergence**
✅ **Bullish Divergence:** Price forms **lower lows**, but MACD makes **higher lows** → **Potential Uptrend Reversal**.
✅ **Bearish Divergence:** Price forms **higher highs**, but MACD makes **lower highs** → **Potential Downtrend Reversal**.

## **2️⃣ Trading Strategy**
✅ **Confirm with Histogram:** Increasing bars strengthen divergence signals.
✅ **Combine with Support/Resistance:** Look for divergences near key levels.
✅ **Use Higher Timeframes:** Reduces false signals and improves accuracy.

### **Conclusion**
MACD divergence is a **powerful reversal signal**, but for best results, combine it with **trend analysis and volume confirmation**. 🚀

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